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NORTHERN BORDER PARTNERS, L.P. INCREASES QUARTERLY CASH DISTRIBUTION 6 PERCENT
FOR IMMEDIATE RELEASE: Tuesday, January 19, 1999
HOUSTON – Northern Border Partners, L.P. (the Partnership) announced today a 6 percent increase in the Partnership’s quarterly cash distribution to $0.61 per unit for the fourth quarter of 1998, up from $0.575 per unit. The indicated annual distribution is now $2.44 per unit. The distribution was previously raised 4.5 percent in January 1998.
“The successful completion of The Chicago Project enables the Partnership to increase the distribution to its unitholders,” said Larry L. DeRoin, chairman and chief executive officer of Northern Border Partners, L.P. “The Chicago Project extended the reach of Northern Border Pipeline Company’s pipeline into the Chicago market area and added capacity of 700 million cubic feet per day to the system, an increase of more than 40 percent. All of the new capacity is contracted under firm, long-term agreements, further increasing Northern Border Partners’ cash flow.”
The quarterly distribution is payable February 12, 1999, to unitholders of record as of January 29, 1999.
As a result of the Partnership’s continued distributions to unitholders and its investment in The Chicago Project, the Partnership Policy Committee, in accordance with the Partnership Agreement, determined the subordination period ended December 31, 1998. The subordinated unitholders’ right to receive distributions is, therefore, no longer subordinated to the rights of the common unitholders, and the 6.4 million outstanding subordinated units have been converted into an equal number of common units.
Northern Border Partners, L.P. owns a 70 percent general partner interest in Northern Border Pipeline Company, which owns and operates a 1,214-mile U.S. interstate pipeline system that transports approximately 25 percent of all Canadian natural gas imports into the United States. The Partnership also owns the Black Mesa Pipeline, a 273-mile, coal-water slurry pipeline from Kayenta, Arizona to the Mohave Power Station in Laughlin, Nevada. Common units of Northern Border Partners, L.P. are listed on the New York Stock Exchange and trade under the symbol “NBP.” Northern Border Pipeline Company information may be found on the Internet at www.nbp.enron.com.
This press release includes forward looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Although Northern Borders Partners, L.P. believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include changes in the regulatory environment, particularly with regard to regulation by the Federal Energy Regulatory Commission; and the conditions of the capital markets and equity markets.
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For additional information please contact:
A. H. Davis
(713) 853-6941
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